All of the following statements regarding vertical analysis are true except a.in a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets b.in a vertical analysis of an income statement, each item is stated as a percent of total expenses c.vertical analysis may be prepared for several periods to analyze changes in relationships over time d.major differences between a company’s vertical analysis and industry averages should be investigated

Respuesta :

Answer:

Option b. is correct

Explanation:

Vertical analysis is a technique used to analyze the financial statements in which each item is listed as a percentage of the base figure.

All of the following statements regarding vertical analysis are true except in a vertical analysis of an income statement, each item is stated as a percent of total expenses.

So,

Option b. is correct